\u3000\u3 Guocheng Mining Co.Ltd(000688) 696 Chengdu Xgimi Technology Co.Ltd(688696) )
Event:
On April 21, 2022, Chengdu Xgimi Technology Co.Ltd(688696) issued the 2021 annual report. In 2021, the company realized an operating revenue of 4.038 billion yuan (+ 42.78%); The net profit attributable to the parent company was 483 million yuan (+ 79.87%). In 2021q4, the company achieved a revenue of 1.394 billion yuan (+ 44.97%), and a net profit attributable to the parent company of 183 million yuan (+ 88.48%).
Key investment points:
The intelligent micro investment income of 2021q4 company maintained a high growth rate, and the overseas market income was beautiful in 2021. 1) Quarter by quarter: 2021q4 revenue increased rapidly. In 2021q4, the revenue was 1.394 billion yuan, with a year-on-year increase of 44.97%. The rapid growth was mainly due to the excellent sales performance of the company during the double 11 event. The Gmv of the whole network of the double 11 company exceeded 800 million yuan, with a year-on-year increase of 90%. 2) By business: the business income of projection machine has maintained rapid growth. In 2021, the company's revenue from projection machine business was 3.785 billion yuan (+ 42.75%), that from accessories business was 159 million yuan (+ 43.36%), and that from Internet value-added services was 64 million yuan (+ 55.15%). 3) By product, the company's main product, intelligent micro investment, has a beautiful growth rate. In 2021, the company's intelligent micro investment revenue was 3.501 billion yuan (+ 51.97%), innovative product revenue was 219 million yuan (- 3.51%), and laser TV revenue was 64 million yuan (- 46.74%). The obvious decline in the revenue of laser TV is mainly due to the impact of the epidemic on its offline stores of main sales channels, and the sales decline is more obvious. 4) By Region: high growth in overseas income. In 2021, the company's domestic revenue was 3.573 billion yuan (+ 36.07%), while its overseas revenue was 434 million yuan (+ 145.22%), and the company's overseas market development achieved remarkable results.
The optimization of product structure and the increase of the proportion of self-developed optical machines promote the rise of gross profit margin, and the profitability of 2021q4 is further enhanced. 1) Gross profit margin: the gross profit margin of 2021q4 company was 33.44%, which increased by 0.41pct year-on-year regardless of the change of accounting standards. The increase in gross profit margin was mainly due to the rise of average price driven by the optimization of the company's product structure. Superimposed on the fact that the company's medium and high-end products have realized the comprehensive introduction of self-developed optical machines, the overall proportion of self-developed optical machines has increased. 2) Net interest rate: the net interest rate of 2021q4 company is 13.15% (+ 3.04pct), and the profitability is further enhanced. The company reasonably controlled the expense side. Without considering the change of accounting caliber, the sales, R & D and management expense rates of 2021q4 company were 13.33%, 6.28% and 2.50% respectively, with a year-on-year rate of -1.81 / + 0.94 / - 0.16pct.
New products have consolidated the medium and high-end market share, strengthened brand marketing, and the company's leading position in the domestic market is stable. 1) Product side: the company launched its flagship intelligent micro investment h3s and RS Pro 2 in 2021h1, driving the high-end exploration of intelligent projection. According to IDC data, the two high-end products are among the top 10 single product sales in China's projector market in 2021, of which h3s is the first with excellent sales performance. The company aims at the mid-range market and continues to make efforts on the cost-effective newz6x. According to IDC data, new z6x ranks second in single product sales in China's projector market, and its product power is also recognized by consumers. 2022q1 company launched a new mid-range intelligent projection product z6x pro to further consolidate the mid-range market share. 2) marketing side: the company actively tries to represent the spokesperson mode. In 2021, Guan Xuan traffic star became a global brand spokesperson, with the help of traffic to further expand brand awareness. 3) Channel side: the company actively expands offline channels and improves channel network. By the end of 2021, the company had 172 stores, which were widely distributed in the first and second tier cities and gradually expanded to the third and fourth tier cities. According to IDC data, the company's projector market share in China reached 21.2% (+ 3.1pct) in 2022, ranking first, and the leading position of intelligent projection is stable.
The three-dimensional distribution of overseas products and the active development of overseas markets. 1) Product end: 2021h2 company launched new intelligent micro investment products horizon, horizon pro and elfin in overseas markets, and new laser TV product aura. The product matrix in overseas markets was further improved, driving the continuous growth of the company's overseas market sales. 2) Channel side: the company actively expands offline channels to realize the full spread of online and offline channels in overseas markets. The company's offline channels have covered local chain retail groups (such as home appliances, mediamark, etc.) and regional distributors, reaching more local consumers.
As a leader in the intelligent projection industry, the company's revenue has increased rapidly, its profitability has been gradually enhanced, and the "buy" rating has been maintained. The company has rich product matrix, strong growth momentum and high prosperity in the intelligent projection industry. With the improvement of the penetration rate of intelligent projection and the development of the company's overseas market, the company's performance is expected to continue to grow rapidly and maintain the "buy" rating. Considering the remaining risks of core shortage, we predict that the net profit attributable to the parent company from 2021 to 2023 will be 666 / 912 / 1215 million yuan, the corresponding EPS will be 13.33 / 18.24 / 24.30 yuan, and the current share price will be 27.08/19.79/14.85 times PE.
Risk tips: shortage of chip supply, repeated covid-19 epidemic, intensified industry competition, rising raw material prices, uncertainty of the company's overseas business development, lifting of the ban on restricted shares, etc.
